As TikTok faces increasing scrutiny from US lawmakers over national security concerns, Chinese officials are reportedly exploring the possibility of selling the app’s US operations to billionaire Elon Musk. Beijing, preferring to keep the app under ByteDance’s control, is considering backup plans to ensure the platform’s future in the US. Here are five key points on the situation:

1. Chinese officials consider Musk as a potential buyer

Amid the threat of TikTok being banned in the US, Chinese officials are reportedly considering selling its US operations to Elon Musk. According to Bloomberg, there have been discussions as a contingency plan if TikTok can’t address US lawmakers’ concerns about national security. The Chinese government would like to keep the app under ByteDance, but Musk sees the sale as a fallback option.

2. Supreme Court will give its verdict on TikTok ban by January 2025

The case has now reached the US Supreme Court, where the verdict is expected by January 19, 2025. The judges have indicated they are likely to uphold the law, preferring national security over TikTok’s argument that the ban would violate First Amendment rights. free speech. If the ruling comes in favor of the ban, TikTok may be forced to sell or shut down its US operations.

3. Elon Musk’s ex could manage TikTok’s US operations

One scenario being considered involves Musk’s social media platform, X (formerly Twitter), taking over management of TikTok’s US operations. Such a move could lead to integration between the two platforms, which would help X attract more advertisers. Additionally, Musk’s artificial intelligence company, xAI, can leverage TikTok’s vast user data to enhance its AI capabilities. However, no formal talks have been confirmed between Musk, ByteDance or TikTok, and Musk has not commented publicly on a potential sale.

4. Chinese government’s involvement in the sale of TikTok

ByteDance has long denied any Chinese government influence in TikTok’s global operations, and has said the company operates independently. However, Beijing owns “golden shares” in the ByteDance affiliate, giving it some control over the company’s strategy. Additionally, Chinese export regulations prevent the sale of certain technologies, including TikTok’s prized recommendation algorithm. This means that any potential sale would require approval from the Chinese government, further complicating the process.

5. TikTok’s US operations are worth up to $50 billion

Analysts estimate TikTok’s U.S. operations at between $40 billion and $50 billion. Any sale would be highly complex, involving stakeholders from both the US and China. ByteDance has raised concerns about the difficulty of shutting down its US business, describing the process as “extraordinarily difficult” during its arguments at the Supreme Court. Some reports have also raised the possibility of TikTok moving US users to a similar app under a different brand, though the effectiveness of this approach remains uncertain.

As TikTok’s fate remains uncertain in the US, rival platforms like Meta’s Instagram and Google’s YouTube are beefing up their short-video offerings to capture TikTok’s user base as the platform faces a ban. Is.